Toro Corp. to Spin Off LPG Carrier Business into New Public Company

Shares of Toro Corp. (NASDAQ:TORO) rose 4% in after-hours trading Wednesday following the company's announcement of a plan to spin off its liquefied petroleum gas (LPG) carrier business into a new, independent publicly-traded company.

Transaction Details

The new entity will be named AI Okto Corp. and is intended to be listed on the Nasdaq Capital Market, according to a company press release. Toro plans to seed the new company with significant assets, including:

• Two LPG carriers: the LPG Dream Arrax and the LPG Dream Vermax.
• $45 million in cash contributed by Toro.

Under the terms of the proposed spin-off, existing Toro shareholders will automatically receive shares in AI Okto Corp. without any required action or payment. The company noted that fractional shares of AI Okto will not be distributed; instead, they will be aggregated and sold on the open market, with the net cash proceeds distributed to the entitled shareholders.

Strategic Rationale and Leadership

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Toro stated that the move is designed to create a "pure-play LPG company" focused on establishing an AI-enabled operating model. This strategy will involve partnerships with technology vendors, data-infrastructure providers, and maritime-tech firms.

Petros Panagiotidis, the current Chairman and Chief Executive Officer of Toro, is set to be appointed to the same leadership roles at AI Okto. The transaction was approved by Toro’s Board of Directors following a recommendation from a special committee of disinterested and independent directors.

Regulatory Steps and Market Impact

AI Okto has filed a registration statement on Form 20-F with the U.S. Securities and Exchange Commission (SEC). The completion of the spin-off is contingent upon this registration statement being declared effective by the SEC and the approval of AI Okto’s listing on the Nasdaq Capital Market.